Chart of the Day - Thursday, December 15th, 2022

Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). December has historically been the third strongest month for the S&P 500 since 1950, however, most of its gains tend to occur in the second half of the month. Ryan points out that the seasonally strong period begins today (December 15th). Some will mistakenly call this the 'Santa Claus Rally' however, that term exclusively refers to the last five trading days in December and the first two days of the New Year. Michael Santoli once said, "Seasonality is climate, not weather." In other words, we know what typically happens, but of course, we can't predict what will actually happen. If the S&P 500 fails to rally over these next two weeks, it will be a red flag that the underlying trend is unusually powerful to the downside.